Nearly 40% of behavioral health organizations say they can only survive six months or less given the current financial situation they are facing. At the same time, more than half of all providers have seen an increased demand for services since the pandemic hit.
Those are just a few key takeaways from the National Council for Behavioral Health’s latest member survey, which polled 343 of the organizations’ members between August 17 and September 1.
The results shed light on a troubling trend: While the demand for behavioral health care has increased, the supply is trending the other direction, with COVID-19-related financial strain to blame.
The Growing Financial Crisis
Of those polled, 65% said they have had to cancel, reschedule or turn away patients in the past three months. Additionally, nearly 23% said they have lost revenue during that period.
All in all, 39% of behavioral health providers say they can only survive six months or less given the current financial environment they’re facing.
But at the same time, more than 52% of organizations have seen an increase in demand for services in the past three months. This dual pressure—higher demand and fewer resources—creates an unsustainable environment for providers.
Demand Continues to Climb
The pandemic has caused a surge in mental health and substance use challenges across the U.S. Isolation, job loss, grief, and uncertainty have driven more people to seek behavioral health support. Unfortunately, the very organizations meant to provide this care are now fighting for survival.
Many providers report being unable to meet patient needs due to staffing shortages, reduced revenues, and the costs of adapting to new care models like telehealth. This means patients who need help the most may not be able to access timely care.
A Call for Congressional Action
National Council CEO Chuck Ingoglia says the supply-demand mismatch demonstrates the need for immediate Congressional action to help behavioral health providers stay afloat while grappling with COVID-19.
“Congress and the administration have created dedicated funding streams for critical access hospitals, nursing homes and federally qualified health centers,” Ingoglia said in a press release announcing the findings. “It’s time to level the playing field and add behavioral health organizations, which are just as critical, to the dedicated funding stream to ensure they can continue to provide care for millions of Americans.”
The Push for Emergency Funding
Specifically, the National Council is pushing for an infusion of $38.5 billion in emergency funds for behavioral health organizations, with the majority of that money going to Medicaid providers. Medicaid is one of the largest payers of behavioral health services, and without additional support, many providers who serve low-income populations may not survive.
The organization also supports the behavioral funding proposal included in the HEALS Act, which would give $4.5 billion to the Substance Abuse and Mental Health Services Administration (SAMHSA). This funding would help strengthen the infrastructure of behavioral health care during an unprecedented crisis.
Why Funding Is Critical
The National Council argues that behavioral health organizations are just as essential as hospitals and nursing homes. They provide care for millions of Americans struggling with conditions such as depression, anxiety, PTSD, and substance use disorders. Without proper funding, these providers may be forced to shut their doors, leaving countless patients without vital care.
Behavioral health care is not optional. For many people, it is lifesaving. Ensuring providers can continue operations is not only about protecting the organizations themselves but also about safeguarding public health.
What Happens if Providers Close
If behavioral health providers close due to financial strain, the ripple effects will be widespread. Patients will turn to emergency departments for care, straining hospitals that are already overwhelmed by COVID-19. Communities will lose access to preventive care and treatment, leading to worsening mental health crises and potentially higher rates of suicide and overdose.
Without intervention, the demand for behavioral health care will continue to grow, while the capacity to deliver it will shrink. This imbalance could have devastating consequences for individuals, families, and communities across the country.
Looking Ahead
The survey highlights the urgent need for systemic changes in how behavioral health care is supported and funded. Policymakers must recognize the critical role these providers play and allocate resources accordingly. The future of behavioral health care depends on it.
Ingoglia summed it up best: “Without significant financial intervention, I fear millions of Americans may not have access to the behavioral health care they need and deserve.”
The next few months will be pivotal. Whether providers collapse or survive depends largely on the actions taken at the federal level. For now, the message is clear: behavioral health care is in crisis, and the time to act is now.
